As the Union Budget 2026-27 approaches, India’s infrastructure and real estate industries are looking for a decisive shift from policy intent to execution, with industry leaders calling for faster approvals,
sustained capital expenditure, and reforms that ease project delivery amid global economic uncertainty.
The Budget, to be presented in Parliament on February 1 by Finance Minister Nirmala Sitharaman, will be her ninth consecutive Budget and the 88th since Independence. Closely watched by businesses, investors and state governments, the Budget is expected to outline the government’s priorities on taxation, public spending, fiscal discipline and growth at a time when domestic demand and private investment remain key focus areas.
Sammeer Pakvasa, Managing Director & CEO of Eleganz Interiors Limited, said the emphasis for sectors connected to India’s built environment must now firmly move towards execution. He noted that strong momentum in commercial real estate, infrastructure and workplace development in recent years has been driven by urbanisation, private investment and government-led capital expenditure. According to Pakvasa, the upcoming Budget offers an opportunity to consolidate this momentum through greater policy predictability, operational efficiency and long-term capacity building.
“For project-driven sectors such as interiors and general contracting, the most impactful outcomes are those that reduce execution-level friction,” he said, highlighting the need for faster approvals, clearer compliance frameworks and deeper digitisation across regulatory processes to improve delivery timelines and cost certainty.
Pakvasa also stressed the importance of continuity in infrastructure and urban development spending, particularly in commercial districts and transit-oriented development, given its strong multiplier effect across the value chain. He added that sharper focus on workforce development, sustainability and technology adoption, including incentives for green materials, BIM and advanced project management tools, would help create resilient, future-ready commercial environments.
Echoing the call for infrastructure-led growth, Rajesh Damani, Founder and Managing Director of Jamshri Realty Limited, said the Union Budget 2026 could be a turning point for Tier 2 and Tier 3 cities, which are increasingly emerging as centres of demand for quality residential and mixed-use developments. He expects the Budget to prioritise “infrastructure-led urbanisation”, with higher capital expenditure on regional connectivity such as ring roads and metro extensions to unlock new growth corridors.
Damani also flagged the need to revise the affordable housing price cap to better reflect rising land and construction costs in growing cities. Raising the limit to Rs 75 lakh or Rs 80 lakh, he said, would enable more families in Tier 2 markets to access credit-linked subsidies and tax benefits. For developers, he added, granting infrastructure status to real estate and streamlining single-window clearances could significantly reduce project timelines, while incentives for digital infrastructure and green building practices would support the creation of self-sustained urban ecosystems.
From a broader infrastructure and manufacturing perspective, Manish Garg, CEO of Interarch Building Solutions Ltd, said the Budget presents a timely opportunity to reinforce India’s infrastructure-led growth model and support the manufacturing resurgence that underpins it. He emphasised that sustained investment in infrastructure remains critical to driving economic momentum, improving connectivity and enhancing competitiveness.
Garg said Budget measures should extend beyond headline allocations to strengthen access to long-term capital, rationalise duties on key inputs and encourage the adoption of advanced and sustainable technologies. He also called for further strengthening of schemes such as the Production Linked Incentive (PLI) programmes and scaling up workforce skilling, particularly in fabrication and specialised trades, to improve industry resilience. At the same time, Garg pointed out that easing personal taxation to boost disposable incomes could play a vital role in driving consumption demand, creating a multiplier effect across sectors and reinforcing the investment cycle.
Together, industry leaders believe a forward-looking Union Budget 2026-27 that aligns infrastructure expansion, execution-focused reforms, sustainability priorities and consumption-led growth can accelerate private investment and support balanced, long-term economic progress.
